Good Oil Conference September 4-5, 2012

Corporate Presentation

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Disclaimer

This Document is provided solely for use by prospective investors in considering their interest in making an investment in the opportunity discussed herein. This Document is not a prospectus and does not constitute an offer or an invitation to the public to subscribe for or purchase any equity in Mako Hydrocarbons Ltd. or any associated entities.

All references to dollars, cents or $ in the presentation are to Canadian currency unless otherwise stated. References to “Mako” or “Mako Hydrocarbons” may be references to Mako Hydrocarbons Ltd. or its applicable subsidiaries. Unless otherwise noted, all references to reserves and resources figures represent Mako’s company interest in such reserves or resources.

This Document has been prepared to assist prospective investors in making their own evaluation of the investment opportunity but does not purport to contain all the information that a prospective investor may require in reaching its own decision. Any prospective investor should undertake their own inquiries, investigation and analysis of the opportunity and the information contained in this Document prior to making a decision to invest.

Although all due care has been taken in the preparation of this Document, some of the information provided has not been independently verified. Although Mako has no reason to doubt the accuracy of the information provided, no statement should be relied upon as a statement of fact. Mako makes no representation or warranty as to the accuracy or completeness of this Document or any other written or oral communication transmitted to prospective investors in the course of their evaluation of the opportunity, and disclaims all liability for any representations (expressed or implied) contained in, or for errors or omissions from the same.

Prospective investors are advised to seek their own professional advice on the legal, financial and taxation consequences of investing in the opportunity.

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Oil and Liquids Rich Gas Opportunity

• Large Acreage Position

• Light oil & Liquids rich plays

• Very large resource potential

• Multiple targets

• Significant regional activity

• Early results continue to yield attractive economics

• Scope for significant production growth

Land, Technology, Opportunity

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Canada’s Favorable Operating Environment

• Prolific hydrocarbon province

• Mature and established exploration & production industry

• Politically stable

• Ready, accessible domestic market and export friendly

• Attractive fiscal structure

• Highly competitive royalty regime

• Readily available infrastructure, skilled labor force, rigs and services

• Significant recent international investment activity

Proven and Stable Operating Environment

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Core Plays Duvernay Shale • 53 net sections • OGIP of 76 to 130 bcf/section • NGLs of 100-200 bbls/mmcf • IP rate of 750-1500 boe/d • 30-50% NGLs • Recoverable reserves of 5-7

bcf/well

Rock Creek Sandstone • 63 net sections • Recoverable reserves of 500-

750 mboe/well • NGLs of 100+bbls/mmcf plus

up to 165 mbbls oil • IP rate of 400-600 boe/d • 50-60% oil & NGLs

Developing Plays Liquids Rich Gas Window

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Duvernay Analogue:

Eagle Ford Shale • OGIP of 180-210

bcf/section • NGLs of 20-130 bbls/mmcf • IP rate of 400-1700 boe/d • 10-75% NGLs • Recoverable reserves of

3-6 bcf/well

Approx. 700km

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Duvernay Shale – Emerging Resource Play • An emerging world class liquids rich resource play in the Western Canadian

Sedimentary Basin, approx. 38,000 mi2 (100,000 km2) in size

• The play came to prominence in 2010 and 2011, when more than C$2 billion was spent in land auctions for mineral rights

• The Duvernay: A Devonian aged marine shale that is the source rock for most of the conventional oil fields in Alberta, Canada

• Key attributes: Similar to other North American Shale plays but generally touted as Canada’s analog to the Eagle Ford Shale in the Texas basin

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Duvernay Industry Overview: The Early Days

Kaybob • NGLs rich gas window originally based

on proprietary independent study from the Discovery Group, experts on Eagle Ford and Marcellus shale

• Originally 20 wells defined the NGL hydrocarbon fairway

• Kaybob field to the north: Industry drilled 81 Duvernay wells from 2010 to current day

Activity NW of Mako lands (Duvernay-Kaybob) • Celtic Exploration 7 horizontal; 13 wells total • Shell Canada 7 horizontal; 13 wells total • Athabasca Oil 6 horizontal; 8 wells total • Chevron 5 horizontal; 11 wells total • Husky 3 horizontal; 7 wells total • Encana Corp 2 horizontal; 10 wells total • Other (6 operators) 10 horizontal; 19 wells total TOTAL 40 horizontal 81 wells total

Greater Kaybob

Greater Pembina

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Duvernay Industry Overview: Evolution • Initial production rates range from ~

900 to 1,200 boe/d and industry

• Initial success moved the industry SE with 35 wells now drilled to date

• Importantly the NGLs rich fairway has been materially expanded

• It is this fairway that is anticipated to yield the best combination of risk, production rate, EUR and ultimately….economics

Activity adjacent to Mako lands (Greater Pembina) • Encana Corp 7 horizontal; 10 wells total • Conoco Phillips 3 horizontal; 4 wells total • Talisman 2 horizontal; 4 wells total • CNRL 1 horizontal; 3 wells total • Sinopec Daylight 0 horizontal; 4 wells total • Other (10 operators) 2 horizontal; 13 wells total TOTAL 15 horizontal; 38 test wells

Greater Kaybob

Greater Pembina

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Duvernay Overview - Mako’s Proximity

• Significant activity adjacent to Mako Lands

• NGL rich fairway has now double original width.

• Average pay thickness of 45 meters is over-pressured at 64 mPa (9,300 psi)

• Mako Land: 89,449 gross (34,080 net) acres (38.1% average working interest)

• Recent horizontal drilling results have yielded NGLs of 100-200 bbls/mmcf

• Industry anticipating 4 to 6 wells per mi2

(per section)

Early Duvernay players: Sinopec Daylight, Encana, Talisman, Conoco Philips, Bellatrix, Celtic & Bonavista

The NGL rich fairway has expanded significantly

Mako “Black Swan Joint Venture” lands;; 10% WI (30 Sections)

All Mako “North” lands: 50% Working Interest

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Duvernay Industry Activity

Encana–7 horizontal Duvernay wells • 2012 report liq. up to 300 bbls/mmcf • Target EUR per well

• 3-6 bcf gas • 350 – 600 mbbls NGL

Conoco Phillips – 3 horizontal wells

Bellatrix – 1 horizontal well • IP 30 day: 5.6 mmcf/d • 1 horizontal licensed

Talisman- 2 horizontal wells • 2 test wells

Sinopec Daylight– 4 wells

Enerplus • Duvernay EUR per well • 3.5 bcf gas • 75-100 bbls/mmscf liquids

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Duvernay Shale – What the Industry is saying

• “it's early days, and we're not going to get ahead of the rocks here, we continue to be encouraged by what we see in the rocks.” – Talisman Energy Q2 2012 conference call

• “Duvernay shale liquids rich gas window contains as much as 750 trillion cubic feet of gas. Its condensate window is 30% larger than Eagle Ford” – BMO Nesbit Burns

• “We think the Duvernay could be one of the best resource plays in North America in the near term”…“the play with the greatest chance of taking off is the Duvernay” - Larry Strong, managing director for Scotia Waterous June 2012

• The Duvernay is one of Encana’s 3 priority strategic focus for the coming year and plans to drill 10 wells in 2012 as well as designing liquids handling facilities and upgrading infrastructure – Encana August 2012 Presentation

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Why Increasing Industry Interest in the Duvernay?

International majors are currently de-risking Duvernay prospects adjacent to Mako’s lands

• Duvernay formation has characteristics similar to the best resource plays in North America • Liquids rich • Long life resource potential • Scalable development potential • Onshore • Existing infrastructure in place and expanding • Multiple gas markets with growth potential

• Industry participants are looking to increase their resource base and moving towards a higher weighting of liquids in their portfolios

• Profitable!

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Duvernay Pre-Drill Target Economics

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Duvernay (Per Well)

DC&E Capital Costs ($M) 11.0

IP Rate (BOE/D) 1,066

EUR/Well(MBOE) 960

Liquids Yield (bbls/mmcf) 100

F&D Costs ($/BOE) 11.46

NPV 10% ($M) 9,940

Recycle Ratio 3.3

Rate of Return (%) 44.0

Payout (years) 2.1 Note: Sproule May 31, 2011 Price Forecast Utilized

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Rock Creek Overview

• Rock Creek Formation: An extensive Jurassic marine sandstone characterized as predominantly tight with localized areas of better permeability and porosity.

• Mako is targeting the liquids rich areas of the hydrocarbon charged fairway

• This “tight” conventional resource is made economic with horizontal drilling and multi-stage frac technologies

• Mako Lands: 93,550 gross (40,320 net) acres (63 mi2); Average 43.1% working interest

• Estimated pay thickness can exceed 30 meters; Normally pressured (~16 mPa; 2,300 psi) with virtually no water

• Drilling density: up to 4 wells per section anticipated in target areas

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Significant Activity: Rock Creek Horizontal Drilling

• Drilling activity increasing with 41 horizontal wells drilled to end Q1-2012

• Additional 7 drilling licenses to end of 2012 spring breakup

• Light Oil >40° API and liquids rich natural gas

• Drilling timelines have decreased to less than 30 days

• Average timeline from spud to initial production is 3 months

• Major Operators • Sinopec Daylight 12 wells • ConocoPhillips 6 wells • Bonavista Energy 6 wells • Nordegg Res 4 wells

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Pre H2-2009 H1-2010 H2-2010 H1-2011 H2-2011 H1-2012

Rock Creek Horizontal Wells Drilled

Activity Increasing

41 Horizontal Wells Drilled at end Q1 2012

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Pre H2-2009 H1-2010 H2-2010 H1-2011 H2-2011 H1-2012

Rock Creek Horizontal Wells: Spud to Rig Release

Efficiencies Increasing Timeline Decreasing

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De-risking Mako Lands

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Why Rock Creek ?

Economic metrics are compelling

• Highly prospective liquids rich conventional play defined by over 2,000 vertical wells which identified over 75 successful pools; increases understanding, reduces risk.

• Tight hydrocarbon charged areas now successfully exploited via horizontal drilling and multi stage fracs.

• Following the lead of majors such as Sinopec and

ConocoPhillips who are working the Rock Creek acreage adjacent to Mako whilst appraising Duvernay

• Growing cash flow and reserves in Rock Creek horizon while Duvernay continues to be de-risked

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Rock Creek Pre-Drill Target Economics

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Economic metrics are compelling

Rock Creek (Per Well)

DC&E Capital Costs ($M) 5,500

IP Rate (BOE/D) 410

EUR/Well (MBOE, 6:1) 496

Liquids Yield (bbls/mmcf-sales) 104

F&D Costs ($/BOE) 11.10

NPV 10% ($MM) 4.3

Recycle Ratio 3.0

Rate of Return (%) 44

Payout (yrs) 1.9 Note: Sproule May 31, 2011 Price Forecast Utilized

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Deep Cut Facilities Map

• Extensive regional infrastructure and plant capacity available to process natural gas and associated liquids.

• Approximately 405 mmcf/d of available gas processing capacity to process Rock Creek or Duvernay production. F

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2012 Summary of Achievements

• Complete Farm-out of 30 sections Duvernay lands to Black Swan Energy – C$10 million net to Mako plus a carried 10% working interest in first 2

wells

• Sale of 8 (4 net) sections Duvernay lands to EnCana – C$1.3 million net to Mako; retained Rock Creek rights

• Strengthened the executive team: Appointed positions of VP Land, CFO & COO

• Drilled 3 additional Provost “Dina” horizontal wells to bring corporate oil production to approx. 200 bbl/d and expanded facility capacity.

• Advanced the technical understanding to commence drilling the Rock Creek development play; 2 locations licensed

• Industry majors (Encana, Conoco, Sinopec, Talisman) continue to validate the Duvernay AND further exploit the Rock Creek adjacent to Mako lands

Appreciating asset value through development drilling

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2012 Forward Strategy

• Continue to secure industry partners to jointly development the Duvernay NGL play

• Secure a financial partner to co-develop the Duvernay & initiate drilling Rock Creek

• Maximize value of Provost “Dina” producing oil assets to assist funding Mako’s growth portfolio

• Design multi-year drilling program to maximize land retention for all horizons.

Appreciating asset value through development drilling

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Market Snapshot

Stock Exchange (at July 12, 2012) ASX

(Australia)

Trading Symbol MKE

Shares (Basic) 167 MM

Shares (Fully Diluted) 275 MM

52-week Trading Range A$0.05 – A$0.18

Share Price A$0.06

Average Daily Volume (over 90 days) 150,000

OTC QX ADRs (20 shares: 1 ADR) MAEEY

Market Capitalization AUS$10 MM

Retail

Institutions

Management & Insiders

Committed management group continues to hold a large position in the company

62%

21%

17%

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Why Invest in Mako?

• Land capacity for a multi-well & multi-year development creates a unique opportunity to accelerate reserves and production growth in two NGLs rich natural gas resource plays

• 2012 development and exploration plan utilizes evolving horizontal and multi-stage fracturing technologies to unlock resource plays in known hydrocarbon fairways

• Strong leadership team with solid track record of building successful oil and natural gas companies

• Long economic life of reserves from horizontal wells offers physical “option value” from cyclical nature of North America’s gas commodity price

• Balanced exposure to commodities: oil & liquids ~50%, natural gas ~50%

• Risk reduction as large area operators expand drilling programs in adjacent areas

Opportunity: Accelerated Production Growth

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Regulatory Statements Forward Looking Statements: This presentation contains forward-looking statements relating to Mako Hydrocarbons Ltd. (the "Company"), including, but not limited to, forward-looking statements in respect of: operation costs; production addition costs; risk management strategies; commodities pricing; use of cash flow; timing of a liquidity event; the Company's strategy and objectives; potential rates of return, cash on cash returns and internal returns; royalty rates; capital expenditures; reserve life index, maintenance costs; future acquisitions and the costs thereof; debt requirements and EBITDA. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. In addition, statements relating to "reserves" are by their nature forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the resources described can be profitably produced in the future. These forward-looking statements are based on various assumptions including expectations regarding the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; the timing and extent of future operations; anticipated timing and results of capital expenditures; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; future exchange and interest rates; impact of increasing competition; ability to market natural gas successfully and the ability of the Company to access capital. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodity prices; currency fluctuations; imprecision of reserve estimates; environmental risks; general economic conditions in Canada, the U.S. and globally; changes in laws affecting the oil and gas industry; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive. Although the Company believes that the expectations and assumptions represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this presentation are made as of the date of this presentation and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Disclosure provided herein in respect of boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This presentation does not form part of any offer of securities, or constitute a solicitation of any offer to purchase or subscribe for securities, and any purchase of or subscription for shares in the company should be made solely on the basis of information contained in any prospectus, offering circular or similar document to be issued by the company in due course, which document will contain detailed information about the Company and its management, as well as financial statements and other financial data and a summary of relevant risk factors. Competent Person Statement: The information in this Announcement was reviewed and confirmed by Mr. Stuart Keck who is the Chief Operating Officer of Mako Hydrocarbons Ltd.. Mr. Keck has sufficient experience that is relevant to the style and nature of hydrocarbon resources and prospects under consideration, and to the activities discussed in this document. His academic qualifications and industry memberships comply with the criteria for “Competence” under clauses 18-21 of the Valmin Code 2005 and ASX Listing Rule 5.11. Terminology and standards adopted by the Society of Petroleum Engineers “Petroleum Resources Management System” have been applied in producing this document.

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Early Stage Value in from Canadian Oil and NGL

ASX:MKE OTC QX:MAEEY

ir@makohydrocarbons.com www.makohydrocarbons.com

Canada 800 - 521 3rd Ave SW

Calgary, AB Canada T2P 3T3 1-403-476-7850

Australia 14 Emerald Terrace

West Perth, WA Australia 6005

+61-8-9226-0443

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Management Team

Paul Griese President & Managing Director Corporate development and restructuring R. Griese Consulting, Kingside Development Ltd., Progress Merchant Bancorp, Plaza BV, Troika Holdings BV, Metropolitan Life, MacKimmie Matthews Cam Bolter Vice President, Exploration Exploration, operations and asset development Zapata Energy, Renaissance Energy, Pointer Exploration, Archer Resources and Dominion Energy Canada Brad Crowe Vice President, Land Land and joint venture negotiations Sword Energy, Thunder Energy Trust, Stride Energy, Hadrian Energy, Kintail Energy, Canrise Resources, Ulster Petroleum, Murphy Oil and Home Oil Stuart Keck Chief Operating Officer Engineering, acquisitions and development Premier Petroleum, Sword Energy, Thunder Energy Trust, Centrica Canada, Starvest Capital, Ulster Petroleum, Canadian Westgrowth Petroleum, Flint Engineering, Petrofina Canada Jim Wilson Chief Financial Officer & Corporate Secretary Finance, administration and strategic planning Grizzly Resources, Archean Energy, Grey Wolf Exploration, Maxx Petroleum, Chauvco Resources and Mark Resources. Simon Owen Executive Vice Chairman Corporate advisory, law and business development Corporate partner Gadens - top 10 national Australian law firm and corporate advisor

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